Organization of People Performance - Hongkong and Shanghai Banking Corporation - Case Study Example

Name: Tutor: Title: Organization People Performance Date: Table of Contents Title: Organization People Performance 1 Table of Contents 2 Organization People Performance 3 Question 1 3 Introduction 3 1.1 Human Resource 3 1.2 Policy Formulation 5 1.3 Appreciating Other’s People Culture and Values 8 2.1 Importance of Adhering to Cultural Diversity 8 2.2 Management of Culture 9 2.3 Management in the Emerging Markets 10 2.4 Assessment of New Environment 12 3.0 Bibliography 12 Organization People Performance Question 1 Introduction Hongkong and Shanghai Banking Corporation is a bank which was established in the year 1865 when Hong Kong was one of the British colonies. The bank engages in both commercial banking and personal finance. Other activities include investment and corporate banking, global banking and private banking. Strategic human resource management has played an important role in the growth of this bank. HSBC bank has grown tremendously to become one of the leading banks in the world. The global presence of the company demands that the management develop a strategic human resource framework that caters for management of people (Torrington, Hall & Taylor, 2005, p.123-6). The goodwill of the people has propelled the company to experience acceptance across many communities in various continents. Being a global bank, HSBC has to focus on ensuring that it has enough momentum to propel it to the desired level of operation. 1.0 Approach to Human Resource Strategy for the Organization to Adopt 1.1 Human Resource The strategic human resource strategy is aimed at ensuring that the profitability of the company remains steady and that customers are satisfied with the quality of service that they are receiving from the company. The company has to be very careful in recruitment, training and development of human resource. Growth and profitability, and sustainability are some of the goals that firm strive to achieve in the long term. The company targets entering into emerging markets which is a strategy that has worked well with the bank. The human resource department has to work on a sustainable workforce supply (Brewster & Smith, 1990, p.231). The human resource available to the company should not be depleted. The company has to have a training program that ensures that new subsidiaries in other continents are supplied with workers who are skilled and know their work. The compensation policy of the bank has to consider the strength or input that workers have invested in the company. The bank has to emphasize talent acquisition a human resource strategy. This is because the bank engages in exploring new markets that need motivated people to deal with the challenges that come with them. The best human talent has to be attracted. Working conditions and remunerations have to be give priority when it comes to budgeting for the firm’s expenditure. Motivated individuals will have the driving zeal to venture into the new market and work towards attaining the goals and objectives of the company. The mission of the company is to become a local bank within the international world (Boxall, 1994, p.32–35). This means that people will identity with the bank as much as they do with the other banks in their own countries. Emphasis on training has to be at the forefront since workers from other established subsidiaries will be have to be deployed in the new branches before local recruitment and training has been done. It is important to incorporate the locals in the staff team since the bank has to gain support from the local community. Components of external environment of the human resource department become very vital when considering hiring of workers in emerging markets. In many countries there is a percentage rule that has to be observed in regard employment. Foreign workers in most countries are limited to a certain percentage such as not more that 4%. Consequently, the bank has to work fast in regard to recurring and recruiting new works. The human resource policy has to be both short term and long term (Boxall & Purcell, 2003, p.45-9).The company has also to be gender sensitive and work with zeal to conform to the set regulations in the country of operation. The human resource department has to also consider the level of technological development in the country of operation before developing training programs. Apart from the technological consideration the company has to look at cultural orientation to avoid a class of practices that it may introduce. For instance, in Islamic countries the worship day is Friday and workers are given time to worship. The company has to take into account development of an international environment. 1.2 Policy Formulation The top executives have to incorporate the host country regulation in its policies and practices. International doctrines affect the performance of the company. The cross border relationships have to be considered in development the strategic plans of the company. Being an international bank, effective resource allocation is important. The resources of the company in terms of human resource have to be allocated carefully among the subsidiaries. The concept of fit has become central among the strategic HRM theories (Torrington, Hall & Taylor, 2005, p.123-6). Internal fit involves development of a range of mutually reinforcing and interconnected HRM policies and practices. Best HR practices are developed to fit sufficiently fit together in that one practice supports the other. Synergetic relationships are key in the internal fit. Synergy is achieved through combined performance of a set of practices and policies of HRM are more than the personal performance. The HRM policies and practices have to emphasized on them being mutually reinforcing. The external fit is used when the firm is coming up with practices and policies that can propel business strategies outside the area of Human resource management. The bank has to work closely with the local people in regard to hiring and compensation. The company has to adopt a system that will embrace international diversity and give room for dynamic systems. It is important to carry out a feasibility test to ensure that the needs of the customers will be catered for (Schuler & Jackson, 2005, p.77). The workers have to be thoroughly trained to work in dynamic environment where they can serve customers from diverse backgrounds. The bank human resource strategy will have to incorporate all aspects that exist in the host country. The development of the human resource department will incorporate the trends and social changes within the local community. Age of retirement vary from one country to another (Wright, McMahan & McWilliams, 1994, p.67-8). The employees have to identify with the bank and be engaged fully in the running of the bank. HSBC is a bank that has an international outlook and consequently, it has to consider many aspects before development of a comprehensive human resource development. There should be continuous training to ensure sustainability in regard to provision of labor force. The company has to engage in cost reduction strategy that has to improve the spending of company resources. The top management has to be involved in exchange of skills and knowledge. The workforce has to be flexible to work in changing environments due to the unfolding in the international business realm. The service sector is different in many countries and thorough research has to be done for determining what the workers have to do in order to win customers and retain the existing ones (Wood, 1999, p.). The human resource strategy has to be flexible to change in social trends and other demographic aspects. HSBC a management has to be very careful when hiring employees to avoid bringing on board workers who may impede the expansion of the company into the emerging markets. Managers have together across all continents to synchronize the policies and working of the bank. The services in the bank are very sensitive and therefore maximum concentration is required. Schuler (1992) came up with a ‘5-P model’ of strategic human resource management that blends five activities of HR which include processes, practices, programs, policies, and philosophies. The bank has to ensure all those activities are developed fully in order to sustain the general running of the company (Schuler & Jackson, 2005, p.11–35). The strategic human resource activities constitute the main building blocks of human resource strategy. The practices that will be carried out by the bank staff in one country may not be necessary be the same across different continents. Strategic human resource management activities are essential in realization of strategic needs of the organization regardless of the environment (Becker & Gerhart, 1996, p.779–801). The interaction between variations human resource activities provides a mode through which organization goals and objectives are met. Recruitment and promotion has been practiced in the host country with the consideration of the culture within which the company is operating. In other countries, women managers are likely to be placed in lower positions as opposed men. The company must have arrangement concerning the incorporation of values and culture in the running of the company. HSBC is a bank that has many workers who come from diverse backgrounds (Mello, 2006). The essence of tolerance has to be included in the training period of the bank. 1.3 Appreciating Other’s People Culture and Values The workers have to be trained on the way of appreciating other people culture and values. Respect for culture has to be a fundamental teaching in the training of the workers within the bank. Adequate research has to be done concerning the attributes that are embedded in a given culture. The doctrine of equity and equality has to be engraved in the minds of the workers so that they appreciate and respect the culture of other people (Singh, 2003, p. 530-43). The strategic human resource management has to have sustainable means that will ensure that the company maintains its resources without hurting the community. Environmental conservation has to be priority for the company in order to appeal to the local community. The company has to continue in the engagement of the employee development and training. Question 2 2.0 Tackling Challenges of Culture and Values in Regard to Diversity in Strategic People Management 2.1 Importance of Adhering to Cultural Diversity Every organization has its own culture and values that direct how duties are accomplished. The culture of the organization defines the trend or pattern of how issues are solved within the company. HSBC has been receiving support due to the goodwill of the people particularly customers. Culture that is encountered in every country will define how the company will go about its operations. Aspects of culture define many demographic trends. Some of these demographic characteristics include age, race, gender, and religion among others. Culture will direct the consumer behavior in a particular country (Richardson & Thompson, 1999). 2.2 Management of Culture Strategic management of culture and values is very important in the future planning of the company as it invest in emerging markets. It is important to understand the culture of the people within which the company is operating from. Social trends emanates from the beliefs embedded in values and culture (Truss et al, 1997, p.53–73). Culture influences even the dress code and protocol that is used in official gathering. Once a company spreads its branches across countries it begins dealing with challenges concerning differences in culture and way of life. The top management of the human resource department has to learn how to incorporate the local culture into the approach that would be used by the company in solving its problems. Strategic people management becomes a big challenge to the company considering that it operate in a global environment and has subsidiaries in Asia, Europe, Middle East, and America. The issue of values and culture become very crucial in management of people since HSBC is an international bank that operates in environment where cultures and values differ from one environment to another (Schuler & Jackson, 2007). The top management has to embrace diversity of values and culture in order to cater for every need of employees so that maximum productivity is realized. The bank operates in various continents where cultures and values differ sharply. The service industry is among the most challenging environment when it comes to management of people (Torrington, Hall & Taylor, 2005). Quality and top class service are vital when dealing with clients in the banking sector. A global company has to deal with culture shock that it will experience in the new environment. If the human resource department does not consider the culture of the people in the host country, it will lose touch with reality. The local people will not be proud to be identified by the bank. HSBC is bank that is targeting at becoming a local bank in the international front. This means that it has to be recognized just as the local bank within the country of operating. It is the desire of every company to be recognized and identified in the environment that is operating. The first branch of the bank was in Hong Kong in 1865 (Budhwar & Sparrow, 2002, p. 599-638). The bank put up another branch that in Britain. The rapid growth comes with acceptability and support of the local people. When it comes to recruitment, issues of diversity in terms of culture, race, and religion is very important. The bank has to be known as an equal opportunity employer who does not favor anyone. When employees of one race that is not the majority in the host country are many in the employees of the bank, questions begin to be asked. It should appear as if a certain class or culture of the local citizens is being favored. Employment has to be purely on merit basis. 2.3 Management in the Emerging Markets The management in the emerging markets has to work hard to integrate its work functions with the values and culture of the local community of the native people. However, all should be done to ensure that the standards of the company are not compromised. Quality of service and dedication of the employees has to remain steadfast throughout. The employees have to be familiar with the culture and values that are embraced by clients. When the employees do not understand the local culture, it might be easy for disagreement to precipitate. The values concerning respect for age and gender should be embraced within the whole system of the company (Bamberger & Meshoulam, 2000, p.176). The company management has to make sure that every employee has a role to play in the development of the bank’s profile in the corporate community. The bank has to have an identity that makes it easier for clients to identify it among the banking service providers. A unique culture makes it easy for clients to identify with the bank in a competitive environment (Becker & Gerhart, 1996, p.779–801). Positions at work and development of the management structure will be determined by the values and cultures that are upheld by the local people. The bank has to synchronize is operations with what is reflected within the society. Going against the ethics and culture of the society can be very retrogressive on the part of the bank. The implementation of strategic human resource management has to consider the cultural background of the host country. The management has to engage in exchange program with native established bank in regard appreciating the culture of the country in which it is operating. The bank has to set aside enough money to train its staff on ways of treating clients from different backgrounds. A thorough background check is required when preparing to start new ventures in new market. Understanding the saving culture of the people makes it better for the bank to fix interest rate and other regulation (Pfeffer, 1998, p.134-9). Every country has values that it holds in high esteem. These values have to be upheld and reflected within the programs and practices of the HSBC. The values inculcated in the workers have to be blended with the culture of the people within which the bank operates. The bank has to establish a trend that will not clash with the ruling culture in the society. 2.4 Assessment of New Environment New environment has to be ventured into with consideration of the values upheld by the society. It is not good to implement programs without looking at the culture of the community around. Programs and practices of the company have to look blending the strategic goals of the bank with the common culture of the people around (Whittington, 2001, p.67-9). The way of serving and welcoming customer has to consider etiquette and courtesy as taught by the people in the traditions and values. Clients will be upset if they are served in total disregard of the culture and values that they uphold in the society. The top management has to act as good ambassador of the company. 3.0 Bibliography Bamberger, P. and Meshoulam, I., 2000, Human Resource Management Strategy. Thousand Oaks, CA: Sage. Becker, B.E. and Gerhart, B., 1996, The Impact of Human Resource Management on Organisational Performance: Progress and prospects. Academy of Management Journal, 39: 779–801. Boxall, P.F., 1994, Placing HR Strategy at the Heart of Business Success. Personnel Management, July: 32–35. Boxall, P. and Purcell, J., 2003, Strategy and Human Resource Management. Basingstoke: Plagrave. Mello, J.A., 2006, Strategic Human Resource Management. South-Western, Thompson. Pfeffer, J., 1998, The Human Equation. Boston, MA: Harvard Business School Press. Richardson, R. and Thompson, M., 1999, The Impact of People Management Practices on Business Performance: A Literature Review. London: IPD. Schuler, R.S. and Jackson S.E., 2007, (eds.) Strategic Human Resource Management: A Reader. London: Blackwell Publishers. Schuler, R.S. and Jackson, S.E., 2005, A Quarter-century Review of Human Resource Management in the U.S.: The growth in importance of the international perspective. Management Revue, 16: 11–35. Torrington, D., Hall, L. and Taylor, S., 2005, Human Resource Management. Harlow: Financial Times. Whittington, R., 2001, What is Strategy and Does it Matter? London: Routledge. Truss, C., Gratton, L., Hope-Hailey, V., McGovern, P. & Stiles, P., 1997, Soft and Hard Models of Human Resource Management: A reappraisal. Journal of Management Studies, 34: 53–73. Wood, S., 1999, Human Resource Management and Performance. International Journal of Management Reviews, 1: 367–413. Wright, P.M., McMahan, G.C. & McWilliams, A., 1994, Human Resources and Sustained Competitive Advantage: A resource-based perspective. International Journal of Human Resource Management, 5: 301–326. Becker, B. & Gerhart, B., 1996, The impact of human resource management on organizational performance: progress and prospects. Academy of Management Journal, 39 (4): 779-802. Brewster, C., & Smith, C., 1990, Corporate strategy: A no-go for personnel? Personnel Management, 22 (7): 36-40. Budhwar, P.S., & Sparrow, P.R., 2002, Strategic HRM through the cultural looking glass: mapping the cognition of British and Indian manager. International Journal of Human Resource Management, 23 (4): 599-638. Singh, K., 2003, Strategic HR orientation and firm performance in India. International Journal of Human Resource Management, 14 (4): 530-543. Read More